Gartner Research

Consumption-Based Pricing Is Emerging From Leading SaaS Providers, but Beware

Published: 11 March 2019

ID: G00379668

Analyst(s): Stephen White , Jo Liversidge

Summary

Consumption-based pricing is often assumed to be synonymous with cloud. Until recently, it has been largely absent from major providers’ SaaS offerings — but that is changing. Sourcing, procurement and vendor management leaders must carefully evaluate consumption-based pricing to reduce SaaS costs.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Digital Business and Cost Optimization Are Driving Major SaaS Providers to Offer Consumption-Based Pricing
  • Pay-as-You-Go IaaS Offerings Are Creating Growing Customer Demand for Similar Pricing Flexibility in SaaS Models
  • Consumption-Based Pricing Will Likely Be More Expensive per Unit Than Committed Volumes
  • Consumption-Based Pricing Will Force Some SaaS Pricing Metric Changes for Existing Customers

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